Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Housing, Communities and Local Government, whether he has made an assessment of the potential merits of a cap on service charge rises at the rate of CPI inflation for social housing tenants.

All service charges must be set in line with the Landlord and Tenant Act 1985 with service charges payable only to the extent that the costs have been reasonably incurred. The reasonableness of the service charge a social housing landlord is seeking will depend on the nature of the works required and other contributing factors.

The Government’s policy statement on rents for social housing (published in February 2019) encourages registered providers of social housing to keep increases for services charges within CPI+1%, to help keep charges affordable.

For tenants in Affordable Rent properties the calculation of their gross rent includes service charges. Gross rent for these properties is capped at 80% of market rent.

Social housing tenants have the ability to apply to the Property Chamber of the First Tier Tribunal for a determination where they do not believe the charges are reasonable, and must be consulted when major works are being proposed.